RIYADH: Arabian Drilling Co, a Saudi oilfield-services firm partly held by Schlumberger NV, are hiring Goldman Sachs, HSBC Holdings Plc and SNB Capital to manage its initial public offering (IPO) in Riyadh.
The firm will sell 26.7 million shares, or a 30% stake, according to a statement, adding to a queue of companies planning to IPO on the Middle East’s biggest stock market.
The offer price will be determined following a book-building period from Sept 28 to Oct 5. About a third of the IPO will be new shares, and the proceeds will be used to scale up onshore and offshore fleet and expand operations in the Gulf Cooperation Council region, it said.
Arabian Drilling operates 45 rigs and had revenue of US$586mil last year.
It also has an order backlog of US$2.2bil .
“We are in a period of unprecedented growth for Arabian Drilling - oil prices are up, demand for energy is high and we are growing,” chief executive officer Ghassan Mirdad said in an interview.
“We have a clear strategy for growth, in Saudi or outside, and this needs a lot of funding.”
Investor appetite for Saudi listings remains strong, though a rally in Middle Eastern equities has faded over the past few months as fears of recessions gripped global markets.
Saudi Arabia is home to the Middle East’s biggest stock market and saw 10 IPOs in the past 12 months, raising a combined US$6.55bil , according to data compiled by Bloomberg.
Drilling could be valued at more than US$1.4bil , people familiar told Bloomberg in April.
The company was founded in 1964 and counts Saudi Aramco, the kingdom’s state energy producer, among its main customers.
- Bloomberg
Created by Tan KW | Mar 28, 2024
Created by Tan KW | Mar 28, 2024
Created by Tan KW | Mar 28, 2024
Created by Tan KW | Mar 28, 2024
Created by Tan KW | Mar 28, 2024
Created by Tan KW | Mar 28, 2024
Created by Tan KW | Mar 28, 2024